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It wasn’t that long ago when women were expected to take a back seat when it came to the management of the family’s finances. A wife would be handed her housekeeping allowance and was required to manage all things domestic; in return, her husband would bring home the ‘bacon’.
Single women were groomed to find the ‘right man’ and their career pursuits were limited to the nursing and teaching professions. Of course, this is a generalisation but it’s not too far off the mark. Today is, thankfully, very different. Fast forward 60 years and you have generations of women who can handle their own finances; grow a family while also growing a business.
Nolene Parboo, senior manager: Deposits, Standard Bank, shares 10 tips to ensure you stay on track and in control.
- Face your demons: If you have historically avoided all things financial, now is the time to take the wheel. Get familiar with financial terminology, read books on money management and make an appointment with a financial advisor. They will help you organise your life and get you thinking about a strategy.
- If you have a partner who likes to keep control of the cash, be firm about your position. He needs to realise that he may not always be there for you and if he insists on keeping you in the dark, it could severely compromise your financial future.
- Devise your own methods of money management. Make a list of your goals and needs and allocate funds to them. This will give you a picture of what you must save each month. If you realise that you don’t have the funds to achieve these goals, scrutinise your budget and identify any inefficiencies. Over indebtedness is a reality for many South Africans and this means that many women do not have cash available to save. Work out how much you owe and settle as many accounts as possible. Retail debt, as in clothing and furniture accounts, is the most expensive debt, so target these first. If you are married you should go through this process with your partner; you will both be better off at the end of it.
- Get covered: If you are married or in a long-term relationship and you do not work, you need to make sure that your partner has enough life and disability cover to protect the family financially should he suddenly pass away or is disabled. If you are single, income protection and disability cover are very important as you will have no-one to fall back on if you cannot work.
- Assert yourself in your career: Women tend to be less forceful in procuring raises in income than men. Don’t shy away from asking for what you are worth. Building financial stability is not only about smart investing, it is about earning the money to invest in the first place.
- Invest in yourself: A woman usually gets so caught up in balancing work and home that she often forgets to keep her skills current. Take as many courses and development programmes as you can to ensure that your skills remain in high demand. This will translate into better income down the road.
- Never give up. When an individual starts managing money for the first time, they may hit some obstacles, don’t let small setbacks knock you off your track. The key to successful money management and investing is consistency. Determination and focus will get you to your financial goals.
- Have your own credit cards and bank accounts: Having accounts in your own name builds your credit record and will help you access credit in the future. In the event of a divorce or the death of your partner, having your own access to money and credit facilities will make your life a lot easier.
- Use the experts around you: If you are new to the money game, speak to your financial consultant. They will be able to set you up with your own accounts and advise you in terms of the best products for your needs.
- Recognise that your needs are different from men. Women generally retire earlier and live longer than men, so the lump sum needed at retirement is higher. Even if a woman saves 15% of her salary for 20 or more years, the chances are high that she will fall short of what is needed. Most men are underfunded too, so a joint effort in this regard is vital.
